The Hastings SugarCorporation has the following pattern of net income each year, andassociated capital expenditure projects. The firm can earn a higherreturn on the projects than the stockholders could earn if thefunds were paid out in the form of dividends.

   

Year	Net Income			Profitable Capital Expenditure
1		$19million			$ 7million
2		16 million			12 million
3		17 million			6 million
4		21 million			7 million
5		21 million			9 million

The HastingsCorporation has 3 million shares outstanding (The followingquestions are separate from eachother).    

a. If the marginal principle of retained earningsis applied, how much in total cash dividends will be paid over thefive years? (Enter your answer in millions.)
  

b. Ifthe firm simply uses a payout ratio of 20 percent of net income,how much in total cash dividends will be paid? (Enter youranswer in millions and round your answer to 1 decimal place.)
  

c. Ifthe firm pays a 20 percent stock dividend in years 2 through 5, andalso pays a cash dividend of $2.40 per share for each of the fiveyears, how much in total dividends will be paid?
  

d.Assume the payout ratio in each year is to be 30 percent of netincome and the firm will pay a 20 percent stock dividend in years 2through 5. How much will dividends per share for each year be?(Assume cash dividend is paid after the stock dividend).(Round your answers to 2 decimal places.)